Select Page

Larry Swedroe Simple Portfolio
0.09%June 04 | MyPlanIQ portfolio symbol P_79094

  • Portfolio Overview
  • Asset Allocation and ETFs
  • Performance
  • Calculators
  • Rolling Returns
  • Drawdowns

Portfolio Overview


Larry Swedroe Simple Portfolio Overview

Background and Philosophy

The Larry Swedroe Simple Portfolio is designed by Larry Swedroe, a well-known financial author, researcher, and principal at Buckingham Strategic Wealth. Swedroe is a proponent of evidence-based investing, emphasizing low-cost, passive index funds and ETFs to achieve broad market exposure while minimizing fees and taxes. His philosophy aligns with the principles of Modern Portfolio Theory (MPT), focusing on diversification, risk management, and long-term investing. This portfolio is tailored for investors who prefer simplicity, cost efficiency, and a hands-off approach.

Asset Allocation and Analysis

The portfolio consists of the following allocations:

  • 40% TIP (iShares TIPS Bond ETF) -- Provides inflation-protected bonds, reducing purchasing power risk.
  • 15% VTV (Vanguard Value ETF) -- Large-cap U.S. value stocks for stable returns.
  • 15% IJS (iShares S&P Small-Cap 600 Value ETF) -- Small-cap value stocks for higher growth potential.
  • 13% EFV (iShares MSCI EAFE Value ETF) -- International developed market value stocks for diversification.
  • 13% VB (Vanguard Small-Cap ETF) -- Broad exposure to U.S. small-cap stocks.
  • 4% EEM (iShares MSCI Emerging Markets ETF) -- Emerging market equities for higher risk/reward exposure.

Diversification and Risk Level

This portfolio is well-diversified across:

  • Asset Classes: Stocks (U.S. and international) and bonds (TIPS).
  • Market Caps: Large-cap, small-cap, and emerging markets.
  • Investment Styles: Value and broad market exposure.

The risk level is moderate, with a tilt toward value stocks and inflation protection. The 40% allocation to TIPS reduces volatility, while small-cap and emerging market stocks add growth potential.

Pros and Cons

Pros:

  • Low-cost, passive ETFs minimize expenses.
  • Strong diversification across geographies and asset classes.
  • Inflation protection via TIPS.
  • Simple to manage and rebalance.

Cons:

  • Higher exposure to small-cap and value stocks may underperform in certain market cycles.
  • Limited exposure to growth stocks.
  • Emerging markets (EEM) can be volatile.

Application for Retirement Accounts (401(k) and IRA)

Investors can implement this portfolio in their 401(k) or IRA accounts by selecting the closest available funds. Many 401(k) plans may not offer the exact ETFs, so investors should:

  • For TIP (TIPS Bonds): Use a Treasury Inflation-Protected Securities fund if available, or a general bond fund.
  • For VTV (Large-Cap Value): Choose a large-cap value index fund.
  • For IJS (Small-Cap Value): Use a small-cap value fund or a broader small-cap index fund.
  • For EFV (International Value): Substitute with an international developed market fund.
  • For VB (Small-Cap Blend): Use a small-cap index fund.
  • For EEM (Emerging Markets): If unavailable, allocate to a broader international stock fund.

Note: If a 401(k) lacks specific asset classes (e.g., emerging markets), investors should allocate that portion to the next closest category (e.g., international stocks). Since many 401(k) plans do not include commodity funds, investors should avoid forcing allocations to unrelated assets and instead stick to stocks and bonds.

Rule of Thumb: 

  • For stock funds, prioritize index funds, especially low-cost index funds
  • For bond funds, prioritize core bond funds or high-quality actively managed total return bond funds  (if available).

This portfolio is particularly suitable for retirement investors seeking a balanced, low-maintenance approach with inflation protection and global diversification.

Click here for more portfolio details and features ►

Asset Allocation


Symbol Category/Sector Target Weight
EEM
iShares MSCI Emerging Markets ETF 		International Equity 4%
EFV
iShares MSCI EAFE Value ETF 		International Equity 13%
IJS
iShares S&P Small-Cap 600 Value ETF 		US Equity 15%
TIP
iShares TIPS Bond ETF 		Fixed Income 40%
VB
Vanguard Small-Cap ETF 		US Equity 13%
VTV
Vanguard Value ETF 		US Equity 15%


Historical Performance


Larry Swedroe Simple Portfolio Historical Returns

Name YTD Return 1Yr AR 3Yr AR 5Yr AR 10Yr AR 15Yr AR 20Yr AR Inception
Larry Swedroe Simple Portfolio 2.53% 7.22% 4.71% 7.76% 5.65% 7.05% NA 6.22%
VFINX (VANGUARD 500 INDEX FUND INVESTOR SHARES) 2.03% 14.20% 14.72% 15.60% 12.92% 14.19% 10.37% 10.80%
VSMGX (VANGUARD LIFESTRATEGY MODERATE GROWTH FUND INVESTOR SHARES) 5.23% 10.75% 8.37% 7.42% 6.31% 7.36% 6.07% 6.29%
Data as of 06/04/2025, AR inception is 08/05/2005

Calculate Performance

Start date (MM/dd/yyyy)

End date   (MM/dd/yyyy)

Larry Swedroe Simple Portfolio Historical Return Chart


Calculators


Dollar Cost Average Calculator for Larry Swedroe Simple Portfolio

Starting Amount:
Investment Length (years):
Investment Symbol:
Regular Investment Amount ($):
DCA Frequency:
Share on

Retirement Spending Calculator for Larry Swedroe Simple Portfolio

Starting Amount:
Period (Years):
Investment Portfolio or Fund:
Withdrawal Rate (%) :
%
Withdrawal Frequency:
Share on

Rolling Returns


From 08/05/2005 to 06/04/2025, the worst annualized return of 3-year rolling returns for Larry Swedroe Simple Portfolio is -8.35%.
From 08/05/2005 to 06/04/2025, the worst annualized return of 5-year rolling returns for Larry Swedroe Simple Portfolio is 1.04%.
From 08/05/2005 to 06/04/2025, the worst annualized return of 10-year rolling returns for Larry Swedroe Simple Portfolio is 4.32%.

Maximum Drawdown

Larry Swedroe Simple Portfolio Maximum Drawdown